On Board Units Market

On-Board Units Market Outlook (2023-2033)

The global on board units market registered a CAGR of 8.6%, Over the 2018-2022 historical period. The report reveals that the industry will be worth US$ 2.5 billion in 2023 and increase at an impressive CAGR of 14.4% to reach a market valuation of US$ 9.5 billion by the end of 2033.

The automotive industry is in the middle of a significant transition owing to the growing trend of high-end technologies being installed in vehicles. This segment is witnessing several changes in the form of the electrification of automotive components, instant connectivity, and enhanced safety. This is leading to increased penetration of electronic components in vehicles and further creating a significant need for on-board units.

Significant demand growth is expected for on board units owing to advancements in technologies to meet specific requirements, such as superior performance, accuracy, and data security. When used for emergency data, on board units serve as an interface for ITS services such as warnings and driving information that is delivered to drivers.

Report Attributes	Details
On Board Units Market Size (2022A)	US$ 2.1 Billion
Estimated Market Value (2023E)	US$ 2.5 Billion
Forecasted Market Value (2033F)	US$ 9.5 Billion
Global Market Growth Rate (2023-2033)	14.4% CAGR
East Asia Market Share (2023)	39.8%
East Asia Market Value (2023)	US$ 980.6 Million
Europe Market Share (2023)	22.1%
Europe Market Value (2023)	US$ 545.5 Million
China Market Share (2023)	26.7%
China Market Value (2023)	US$ 659.3 Million
Market Share of Top 3 Countries	49.2%
Key Companies Profiled	Commsignia Danlaw Inc Harman Automotive (A Samsung Company) Mitsubishi Movyon SpA Q Free ASA Solaredge Technologies Inc Continental AG Unex Technology Corporation

Why is the Deployment of On Board Units Surging?

“Increasing Throughput at Tolling Facilities”

ETC systems have a high acceptance rate among drivers since they can minimize or eliminate delays sometimes associated with traditional toll facilities. Automatic vehicle identification (AVI), which is part of the ETC system, can reliably identify a particular vehicle at highway speeds using on board devices.

On board units are also connected to roadside electronic readers through antennas, which emit radio frequencies to conduct toll transactions. Open road tolling (ORT) offers a technology solution that makes it possible to use the pricing for traffic control without requiring moving traffic to stop and pay a toll. The most extensively used method for AVI is the deployment of roadside readers in conjunction with on board devices. Other methods utilized for AVI include DSRC and ANPR.

The market continues to adopt advancements and growth in the utilization of such devices. As a result, the market for on board units is expected to showcase 3.8X growth over the forecast period.

“Rapid Adoption in Autonomous Vehicles”

Autonomous driving is one of the primary factors triggering the demand for on board units in vehicles. The market is growing in parallel with the overall growth of the automotive industry. Advanced technologies are increasingly being adopted because of the improving standards of living and rising consumer preference for better safety standards.

The high adoption of ADAS is also another major reason for the elevated demand doe on board unit devices. In recent years, autonomous vehicles have gained traction. With developing infrastructure, on board units are poised to create an absolute dollar opportunity of US$ 7.4 billion during the forecast period.

“Research & Development in On Board Units to Upswing Market Growth”

New technical forces have a significant impact on onboard unit producers. From project conception to launch and operation, the development cycle for a conventional communication satellite lasts at least five years and sometimes even longer.

As a result, on board unit service providers must have a solid understanding of future communication needs to successfully serve current customers and attract new ones. This aspect may continue to be a significant growth obstacle for the global market during the projection period.

Country-wise Insights

What is the Market Scenario for On Board Units in the U.S.?

The United States on board units market is currently estimated at US$ 343.6 million and is expected to expand at a CAGR of 12.7% during the forecast period.

Due to technological advancements that make it simple to embrace new technologies, this will more effectively end a lot of traffic issues in the country. The United States is predicted to lead the market for on-board units in North America.

Why is the Market for On Board Units Highly Lucrative in China?

China is expected to be the highest contributor to on board unit sales and is expected to reach a market valuation of US$ 659.3 million in 2023. The main factors driving vehicle to everything (V2X) development in the country are telecommunications technology providers and automotive OEMs.

In terms of technological advancements, China is anticipated to dominate East Asia. Demand for on board units has increased in the country as a result of rising environmental concerns and increased spending power of the populace.

Since China is a global leader in the electronics sector, it will be possible to design on board gadgets that perform better and are more affordable. As a result, these factors are supporting the development of the Chinese on board units market, which is expected to grow at a CAGR of 13.5% through 2033.

Category-wise Insights

Which Application of On Board Units Brings in High Revenue Streams for Market Players?

During the projected period, vehicle-to-vehicle communication under application is anticipated to account for the highest market share for on board units.

The potential of vehicle-to-vehicle (V2V) communication to wirelessly communicate data regarding the quickness and location of nearby cars offers significant promise in aiding in the prevention of collisions, reducing traffic congestion, and enhancing the environment.

With these on board units, academic institutions and the automotive industry have been advancing V2V communication's lifesaving potential for more than 10 years. These V2V communication messages can detect risks that are hidden by weather, topography, or traffic, and have a range of more than 300 meters.

Increasing regulations by governments in different regions has led to significant growth of the on board units market. By application, vehicle-to-vehicle communication is estimated to reach a market valuation of US$ 1.5 billion in 2023.

What Makes DSRC Technology So Widely Popular?

Demand for dedicated short-range communication (DSRC) is anticipated to expand rapidly and account for the largest market share of 78.2% in 2023. Without the use of cellular or other infrastructure, it is wireless communication technology that permits direct communication between automobiles and other road users.

Each car securely and anonymously transmits data of its location, heading, and speed 10 times each second. The message is received by all nearby vehicles, and each one calculates the risk that the transmitting vehicle poses. Safety applications such as left turn assistance (LTA), intersection movement assistance (IMA), and many others, which are considered to be risky, are assisted with the application.

For more than ten years, DSRC technology has been thoroughly tested, applied, and standardized for V2X applications. Products are available, and a sizable DSRC ecosystem offers a full range of coexisting solutions. This segment is estimated to account for a market valuation of US$ 1.9 billion in 2023.

Competitive Landscape

Prominent on board unit manufacturers are Commsignia, Danlaw Inc, Harman Automotive (A Samsung Company), Mitsubishi, Movyon SpA, Q Free ASA, Solaredge Technologies Inc, Continental AG, and Unex Technology Corporation.

Market players are trying to adopt newer technologies to stay on top of the competition. Several marketing strategies have been adopted such as strategic alliances, product launches, partnership agreements, research and development for superior performance, and many more.

Fact.MR has provided detailed information about the price points of key manufacturers of on board units positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of On Board Units Industry Research

• By Technology :

  • Dedicated Short Range Communication (DSRC)
  • Global Navigation Satellite Systems (GNSS)

• By Connectivity :

  • Cellular Networks
  • Wi-Fi
  • Bluetooth

• By Application :

  • Vehicle-to-Vehicle Communication
  • Vehicle-to-Infrastructure Communication
  • Vehicle-to-Pedestrian Communication

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA